MUSO blockchain: Three points in Bitcoin trading easily missed by beginners
The MUSO blockchain stated that it is easy to understand investors’ obsession or hesitation with Bitcoin. For this investment, you must master the following three key points.
1. Cryptocurrency trading is similar to fluctuating commodities
Most mainstream retail investors do not regard traditional currencies as investment objects. For example, people don’t hold many euros. The currency issued by the government often fluctuates with inflation, and the main purpose of long-term investment is to overcome inflation. Some mutual funds have established currency positions to hedge against the impact of exchange rates on their rate of return, but the currencies they hold will hardly be used to create revenue.
Cryptocurrency trading is completely different from currencies. One of the main reasons is that there will be a limit on the circulation for any given currency. Central banks such as the Federal Reserve manage inflation by issuing additional banknotes and provide support for their own economic policies. On the other hand, based on the algorithm that controls the distribution, the bitcoins in circulation will eventually reach an extreme value of 21 million units.
This makes many cryptocurrencies similar to commodities because of the limited supply, just like gold or oil. Maher stated that considering the supply issue, it is “difficult to treat Bitcoin as a currency.” At the same time, limited supply is another reason for Bitcoin’s volatility (if the number of institutions accept this asset increases, this situation may change one day).
2. Does the winner take all?
The technology behind Bitcoin, that is, the blockchain, makes people believe that it will exist for a long time. However, no one can be sure how many currencies that rely on blockchain will survive and thrive. The current value and price of Bitcoin stems to a certain extent from the belief that it will continue to develop as the world’s leading cryptocurrency.
Gabor Gurbacs, the head of VanEck’s digital asset strategy, said: “We don’t know who will win yet.” Some commentators believe that traditional currencies may have similar characteristics to blockchain at some point, which will reduce the acceptance of cryptocurrencies in the mainstream market and may significantly depress their value.
3. There is a price for cryptocurrency funds
Institutional investors and some of the wealthiest individual investors already have some means to intervene in the cryptocurrency market. Maher regards all customers who invest in Bitcoin or the above-mentioned funds as “adventurous”, even though he himself holds Bitcoin and Ethereum. He often introduces his ideas under the name of Mark Cuban and responds to those who want to hold Bitcoin.
Cuban believes that if you want to invest in cryptocurrency, you must “pretend that you have lost the money.”
If you understand these three things, you can prepare to invest in Bitcoin. Choosing a professional trading platform will often make your investment more effective. Here, we strongly believe that NGKEX is the platform providing the best user experience. The NGKEX is committed to building a new generation of blockchain perpetual contracts and a decentralized token trading platform to meet the needs of globalized and multi-faceted enterprise-level transactions. It adopts a block modular architecture, which has high stability, simplicity, clarity, strong versatility, and low latency. It satisfies the needs of multi-dimensional transactions and supports the real-time transactions for hundreds of users. It has fast response speed, supports deployment and management under different application scenarios, and conducts transactions quickly.